Area business leaders skeptical about Granholm proposals

Published 7:00 pm, Wednesday, February 9, 2005

Jenee Velasquez, executive director of Midland Tomorrow, said she appreciates the governor's focus on the state's biggest issue, jobs. But she has concerns about some proposals, especially the bond issue.

(We) "are going in debt for our future," she said. "I haven't seen all the background to show me that that would be effective.

"Having government participate in innovation has not produced results in other states," she added. "I don't yet understand why Michigan would be different."

Velasquez wondered if the bond debt might cause a brain drain, with young people getting their government reimbursements for their education but then having to repay the bond debt later. And if Granholm succeeds in putting programs in place so more young people attend college, will schools lower the bar, she questioned.

Sue Beckett who, along with her husband, own several businesses in the area - including a day care and a bakery - predicts a vicious circle if Granholm raises the minimum wage. If minimum wage rises, employers won't be able to afford it and employees will lose their jobs, she said. She called it a "trickle-up effect" - someone who's earning $5.15 an hour gets $7.15, and a person making $7.15 then wants a $2 increase, too.